Saudis seek $2.7 billion in US arms

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WIRE:09/08/2000 12:25:00 ET UPDATE 1-Saudis seek $2.7 billion in US arms, maintenance

WASHINGTON, Sept 8 (Reuters) - Saudi Arabia is seeking $2.7 billion in U.S. arms and technical support to help modernise its National Guard and maintain a fleet of F-15 fighter jets bought from the United States, the Pentagon said on Friday. One of the three military packages requested by the Gulf kingdom would include $416 million in light-armoured vehicles, anti-tank missiles and advanced communications equipment made by General Motors Corp. and Raytheon Corp., the Pentagon said.

A second deal valued at $690 million would involve parts, maintenance, training and modification facilities for the large Saudi fleet of F-15 jets built by Boeing Co. The prime contractor for that would would be Al-Salam Aircraft Co., which is 50 percent owned by Boeing. The Defence Department said the prime contractor had not yet been determined for the biggest package, valued at $1.6 billion for flight simulators, parts and technical services for Royal Saudi Air Force F-15s. "The prime contractor will be determined in joint negotiations as the programme proceeds," the announcement said. The planned military deals, which require approval by the U.S. Congress were announced at a time when the Clinton administration is calling on Saudi Arabia and other members of the Organisation of Petroleum Exporting Countries (OPEC) to reduce high oil prices. But such U.S. sales have been routinely approved in the past for one of Washington"s biggest arms customers over the past two decades. "Saudi Arabia remains a highly valued, friendly nation and continues to lead the way for improvements in U.S.-Arab relations," the U.S. Defence Department said in a statement. "It"s strategic location, proven oil reserves and moderate stance in the Arab world link its international interests and security with those of the United States. The Royal Saudi Air Force was a valuable participant in the Gulf War coalition and provides a tested deterrent force against aggression in the region," the statement added. The request for 132 light armoured vehicles built by the Diesel Division of General Motors of London, Ontario, in Canada, along with 1,827 "TOW" anti-tank missiles and sophisticated radio communications equipment made by Raytheon are part of a major effort by the Saudis since the 1991 Gulf War to upgrade their National Guard ground forces. The Pentagon said the high-frequency radio equipment would provide the Saudi guard "with the modern command, control and communications needed to provide security throughout the region."

http://abcnews.go.com/wire/World/reuters20000908_1741.html

-- Martin Thompson (mthom1927@aol.com), September 08, 2000

Answers

I wonder if this has anything to do with the current oil situation?

I filed this in the energy crisis category.

-- Martin Thompson (mthom1927@aol.com), September 08, 2000.


I think it would be a correct assumption that the Saudis are using oil as a bargaining chip here. It is entirely logical.

-- Uncle Fred (dogboy45@bigfoot.com), September 08, 2000.

There's just got to be a connection.

-- Loner (loner@bigfoot.com), September 08, 2000.

If Saudi oil is so hard to refine, how is more production from them going to solve any immediate probem anyway?

-- QMan (qman@c-zone.net), September 08, 2000.

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